Transcript Slide 1

CONFIDENTIAL
OFFER SUMMARY
TABLE OF CONTENTS
1. Executive Summary
Investment Highlights
Investment Considerations
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2. Property Description
Property Overview
Location
Property Description
Harmony Suit Rooms
Luxurious Rooms Amenities
Food & Beverage Options
Meeting Space
Gym & Spa
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3. Market Overview
Ahmedabad
Transportation
Tata Motors – Nano Manufacturing Plant
Education
New Market Development
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4. Hospitality Sector
Demand Segmentation
Cultural Landmarks
Beautifully in Ahmedabad
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5. Lodging Market Overview National Lodging Market
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6. Competitive Overview
Local Area Hotels profi le
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7. Investment Summary
Investment Summary &
Terms of Sale
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This offering presentation has a unique opportunity to acquire 3 Star Amenity Hotel with 55
Luxurious Rooms; 6 Suite Rooms; 3 Harmony Suite Rooms; 2 Banquette Hall; Conference Hall;
Health Club; Multi Cuisine Restaurant; Terrace Garden Restaurant; located within the
Residential & Commercial heart of Ahmedabad, one of India’s fastest growing cities.
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INCREDIBLE LOCATION
The hotel is located along S.P. Ring Road, Nr. Eco Park, Vastral, a major landmark of the city of Ahmedabad. The location is
within city center, in close proximity to major retail and commercial office areas. Additionally the hotel lies strategically at
most busy industrial area of Ahmedabad.
INFLUENTIAL GATEWAY MARKET
Since the beginning of the decade, the state of Gujarat has become a far more important commercial and financial
center than it had been historically, in addition to its traditional position of primary as a business hub. Over the last
five years the state has become a major destination for foreign direct investment and become a growth engine of India.
BRAND & MANAGEMENT
The hotel can be acquired unencumbered of both brand and management affording a new owner maximum flexibility,
in their positioning and management of the hotel going forward. Given the location of the property and the significant
performance metrics of the market, the hotel will be attractive to both domestic and international hotel operators that
recognize the rarity of this kind of rebranding opportunity.
REPOSITIONING OPPORTUNITIES
Given the unencumbered nature of offering, potential new owners can reposition the asset under other domestic/
international brands or re-position the hotel as a boutique or lifestyle product, and unlock significant hidden value.
SUPERIOR PHYSICAL ATTRIBUTES
The property is in excellent physical condition, and would not entail significant renovation or up gradation
expenditure on the part of new owners.
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EXCELLENT LOCATION
• The property is ideally located within the city center and commercial & industrial heart of the city of Ahmedabad. The
property lies in close proximity to SP Ring Road, a major gateway and widely recognized landmark of the city. The
property is conveniently located with respect to major business and demand generators of the city.
• The property is surrounded by three major industrial areas of Gujarat; Odhav, Vatva and Kathvada.
• The hotel can be easily accessed from Ahmedabad International Airport, the main Railway Station and Express High Way
of the city.
EFFICIENT, WELL CONSTRUCTED BUILDING
The 3 Star, Four story, 64 room hotel, has an efficient design and layout. Brilliant space planning and innovative design
features have ensured maximum space utilization, and operational efficiencies.
UPSIDE POTENTIAL
 As per recent report, the city of Ahmedabad are expected to see the highest value increase during the next five years.
Hotel value are expected to increase at a CAGR of a approximately 10.5% in Ahmedabad over the next five years.
• Potential also exists for immediate value enhancement by rebranding the property under an international/ leading
franchise. Strategic rebranding should be able to help the property increase occupancy and ARR, and improve overall
customer value perception, and will better position the property against local competitors.
• The hotel is ideally positioned to capture a share of the additional demand that will be generated by the various
development initiatives being initiated by the state government.
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STRONG GROWTH MARKET
Ahmedabad is one of the fastest growing cities of India, and considered a model for good administration and
focused infrastructure development. Additionally the State of Gujarat has been the largest recipient of Foreign
Direct Investment, flowing into the country and is presently considered one of the best states for starting businesses
in the country. Over the last decade major international and domestic firms like General Motors, Tata Motors,
Reliance, Essar have expanded their facilities in Gujarat.
STRONG FOOD & BEVERAGE DEMAND
Ahmedabad is considered one of the strongest markets in the country for food and beverage outlets, and restaurants
within upscale hotels are considered the preferred destination for eating out. Almost all hotels in the city, report food &
beverage contribution in excess of 30% of total revenues.
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PROPERTY OVERVIEW
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LOCATION:
TAKSHASHILA Galleria Hotel
S.P. Riing Road, Nr. Eco Park,
VASTRAL, AHMEDABAD
GUEST ROOMS:
Harmony Suite Rooms No.3
Suite Rooms No. 6
Luxurious Twin Bed Rooms No.28
Luxurious Double Bed Rooms No.27
FOOD & BEVERAGES:
All-Day Dining Restaurant
Lobby Lounge
Banquet Hall I & II
Terrace Garden Restaurant
MEETING SPACE:
Accommodate up to 150 persons
AMENETIES & FACILITIES:
Air-Condition At Each Room
Air-Port Transfer
Audio-Video Equipped
24 Hours Room Service
Direct Dialing Facility
Satellite TV & LCD
Wi-Fi Connectivity
Coffee Maker & Freeze Each Room
Laundry Facility
Power Back-Up
Safe Deposit Locker
Travel Desk
Doctor on Call
Foreign Currency Exchange Facility
Softener & RO Water Supply
Name of attraction
Airport
Railway Station
Vadodara Express Way
Vastrapur Lake
Kankaria Lake
Adalaj
Nal Sarovar
Modhera sun Temple
Akshardham Temple
Distance (Km)
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2
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The property features 64 rooms, in a combination of Luxurious Rooms, Suite Rooms, Harmony Suite Rooms.
Harmony Suit Rooms: Luxurious Rooms are
well appointed, spacious, with amenities
and facilities geared towards the business
traveler. These rooms are located on the
2nd floors with expanded living and sleeping
spaces, with green eye view.
Suit Rooms: These rooms are equipped
with all the modern amenities and
facilities.
Luxurious Rooms : With excellent
atmosphere with complete facilities &
amenities
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Harmony Suit Rooms amenities and services include:
In-Room Safe
Mini-bar
24-hrs Room Service
International Direct Dialing
Iron & Iron Board in the Room
Hair Dryer
In Room Movies
Ambience Controller
Doctor on Call
Satellite Channels
Turndown Service
Laundry / Dry Cleaning
Tea & Coffee Maker
Fruit Basket
Wi fi Access
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All Day Dining
Is a lively all day coffee shop, with contemporary styling and chic interiors. This
restaurant serves full meals, quick bites and beverages in a casual ambient setting.
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Two Banquet Halls - 1 & 2, which can be combined together into one large hall. The
hotel can accommodate events ranging from 10 guests to up to 150 guests.
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To get health up to fit there is a 2696 Sq. Ft. Large Area for Gym & Spa.
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MAJOR PRIVATE COMPANIES IN AHMEDABAD
Zydus Cadila
AHMEDABAD
Located on the banks of the Sabarmati River, 32 kilometers from the state
capital Gandhinagar, is the city of Ahmedabad. The city is the administrative
capital of the district of Ahmedabad, and is also considered to be the
commercial capital of the state of Gujarat. Ahmedabad used to be the capital
city of the state of Gujarat till 1970, when the new capital city of
Gandhinagar was built.
Ahmedabad today is the seventh largest city and the seventh largest
metropolitanarea of India with a city population of approximately 3.96
million and metropolitan population of over 5.5 million. Ahmedabad is
ranked as the fast growing city of India and amongst the top 5 growing cities
of the world, and was also ranked as 5th best amongst all cities of India for
IT/ITES firms.
Torrent Pharmaceuticals
Nirma Group
Reliance Industries
Adani Group
Arvind Mills
Dishman Pharmaceuticals
Torrent Power
Tata Motor
Ahmedabad is also one of India’s premier industrial hubs, with a diversified
industrial base. Starting out as a major centre for Textiles, the city is today a
thriving centre of Pharmaceutical and Chemical industries. Two of India’s
largest pharmaceutical companies — Zydus Cadila and Torrent
Pharmaceuticals—are based out of the city.
The city is also home to the corporate headquarters of domestic majors like
the Adani Group and Nirma Group. In recent years, a number of international
companies have set base here including; Bosch, Stork, Rollepaal and Johnson
Pumps.
Tata Motors decision to set up the manufacturing plant for the Nano car at
Sanand, near Ahmedabad, has helped establish Ahmedabad as a destination
for Automobile manufacturing. Many automobile fi rms, including Ford
Motors, General Motors and Toyota Motors are expected to set shop in
Ahmedabad.
These manufacturing units, together with those of their suppliers,
distributors etc are projected to further boost the overall growth potential of
the city.
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TRANSPORTATION
Air
The Sardar Vallabhai Patel International Airport, is the main commercial airport of the
city. Ahmedabad is linked via direct fl ights to most major cities of the country. The city
is also connected to international destinations like Abu Dhabi, Australia, Doha, Jeddah,
Dubai, Bangkok, Kuwait, London, Muscat, Singapore, Sharjah, Dammam, Riyadh.
Rail
Ahmedabad is one of the six operating divisions of the Western Railway, and is
connected to most major cities of India via regular train services.
Road
National Highway 8, the Mumbai Delhi Highway passes through Ahmedabad. National
Highway 8C, links Ahmedabad to the state capital Gandhinagar, while National
Expressway 1,links the city to Baroda. Ashram Road, CG Road, Relief Road and the SG
(Sarkej—Gandhinagar) Highway are considered to be the main arterial roads of the city.
City Transport: Bus Rapid Transit System
The BRTS is modelled on the International standards and
proved to be highly affordable and effective in operation. It
has revolutionised the system of public transport in the city.
The buses are comfortable and technically advanced. The
system has dedicated corridors running along the middle of
the city roads in which no other vehicles are allowed.
Ahmedabad BRTS and MetroLink Express Gandhinagar and
Ahmedabad, Gujarat International Finance Tec-City (GIFT) can
be reached easily through multimodal mix of Rapid Transport
Systems.
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TATA MOTORS - NANO MANUFACTURING PLANT
Spread over 750 acres of land, and an adjacent 350 acre vendor park, Tata
Motors plant in Sanand (40 kms from Ahmedabad), is the mother plant for
Tata Motors’ ambitious small car “The Nano”, the worlds cheapest car. The
plant has been designed to produce upto 250,000 cars per annum to start
with, and further expandable to upto 350,000 cars.
The vendor park, located next to the main
manufacturing plant, is home to 41 tier 1
suppliers for automotive components. This
project is expected to provide direct & indirect
employment to over 10,000 people.
The Government further aims to develop this
area, into a manufacturing hub for automobiles,
by off earning various incentives to this sector.
Presently global majors like Ford Motor
Company, General Motors, and Toyota Motors
are in talks with the Government to set up
faculties here.
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Gujarat International Financial Tec City (GIFT)
India’s biggest major planned skyscraper outside Mumbai, Gujarat’s and
India’s tallest commercial skyscraper, Gujarat’s first major commercial
skyscraper, and one of the biggest single megaprojects in India!
Strategically located between the state Capital Gandhinagar and
Ahmedabad, GIFT is positioned as an International Finance Centre. The
project is expected to comprise around 62 million square feet of space, of
which the first phase comprising 4 million square feet is already underway.
Ahmedabad Metro Rail expected to span a distance of 11 km in
the first phase, the metro is expected to run along Relief Road, a major
arterial road of the city. The project is still at the conceptualization
stage and is expected to get underway in the immediate future.
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Akshardam Temple,
Some of the popular landmarks in
Ahmedabad
this ten
storey high temple is considered an
architectural marvel, and an
important place of pilgrimage for
Hindu devotees. Dedicated to
propagating the teachings of the
Swaminarayan faith, this temple is
an
amazing
example
of
craftsmanship
and
sandstone
carving. This temple is visited
annually by over two million
devotees.
Situated on S P Ring Road, is a splendid collection of vintage cars at the
Auto World Vintage Car Museum. It has over 125 cars such as Rolls
Royce, Bentley, Model T Ford, Jaguar, Chrysler, Mercedes, Fiat, Maybach,
Packard, Cadillac, Buick and more. The place also has a ethnic restaurant
serving delicious Gujarati food making this an ideal place to spend a day
with the family.
• Sabarmati Ashram, situated on the banks of the river
Sabarmati, the Ashram functions as a museum dedicated
towards preserving and propagating the legacy of Mahatma
Gandhi. The Ashram attracts more than 500,000 visitors
from across the world every year.
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Kankaria Lake is one of the most favorite picnic spots of
the people of Ahmedabad. Adjacent to the lake, lays a
beautiful garden called Nagina Wadi. The pleasing view of
the lake, the humming and chirping of birds and the
greenery bordering the lake will make you fall in love with
this place. You can also avail the boating facility. Kankaria
Lake provides a beautiful view of the sunset. There is also a
zoo and children's park located nearby the lake. In recent
days with the development around the lake people can
enjoy a toy train ride around the lake. The place is enjoyed
as a place for yoga, walking, and running, especially in the
very early morning.
The Gujarat Science City at Ahmedabad,
is to highlight its eagerness to promote
scientific thought and develop in the
field of science and technology. It offers
extensive educational and entertainment
options to the tourists. It's in educational
and entertainment zone with its amazing
displays, laboratories, activity corners
and live demonstration shows have
become a major places to go
for sightseeing in Ahmedabad.
The Sardar Patel Stadium in Ahmedabad
can hold a crowd of almost 50,000. It has
also hosted one game in each of the two
World Cups.
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NATIONAL LODGING MARKET
Hotel market performance across the country were affected negatively in the first half of the year 2009-10, on account of the global
financial crisis, coupled with the Mumbai terror attack, which took place in the previous year. With most organizations curbing expenses
related to travel and entertainment, the hotel industry suffered from a decrease in commercial travel and decline in revenues from
meetings and conferences as well as corporate events and gettogethers. However, towards the end of the year, strong domestic demand,
coupled with increased global confidence in the business environment in India helped in improving occupancies and average rates. Overall,
the average occupancy across India declined by approximately 3%, with some cities witnessing declines of up to 15%, reflecting decreased
travel by corporations, re-negotiation of corporate contracts, and decreased leisure travel. However, the average rates witnessed an
increase of approximately 8%. However the year 2010/11 proved to be a comeback year for the Indian Hospitality industry after the earlier
two difficult years. Nationwide RevPAR is estimated to have increased by 10.7% in 2010/11 through increases in both occupancy and
average rates, as hotels across the country saw strong increases in demand and were optimistic about the future outlook, enabling them to
increase rates despite significant new supply additions.
AHMEDABAD LODGING MARKET
As opposed to the national average, the city of Ahmedabad witnessed an increase in occupancy of approximately 3% in 2009-10, over
2008-09, inspite of significant supply additions to the overall room inventory of the city. This increase in occupancy was primarily on
account of strong demand growth, which was able to not only off set the depressed market sentiments, but also absorb the significant
supply addition. The overall economy of the state of Gujarat grew at a rate of 12% in 2009-10, as compared to the national average of
8.5%. Going forward the state is expected to grow at a rate of 15% through 2015, making it one of the fastest growing economies of the
country. This strong projected growth, supported on strong market fundamentals and increasing volume of corporate investments, should
result in strong lodging performance going forward.
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LOCAL AREA HOTELS PROFILE
PRIDE HOTEL
This 164 room property is located just off S.G. Highway, and is the second largest hotel of Ahmedabad, in terms of room inventory. The Pride
Hotel, is a full service hotels and features 164 rooms & suites, multiple F&B outlets including the Casablanca a fi ne dine restaurant, Café Treat – a
24 hour coffee shop and Zing. The property off ers large function space, capable of accommodating over 400 people and also offers recreational
facilties including a swimming pool, health club and a spa.
COURTYARD BY MARRIOTT
This 165 room hotel, is the current leader in terms of occupancy and ARR in the city and is considered the most premium hotel of the city. The
property is located on Satellite road and features multiple F&B outlets including a speciality restaurant, 24 hour Coff ee shop and the large meeting
and banqueting facilities. Recreational facilities include a swimming pool and a health club.
LEMON TREE
The Lemon Tree Ahmedabad is a 99 room full service hotel. The hotel features facilties like a multi cuisine coff ee shop, business centre and meeting
rooms. Recreational facilities include a fi tness centre. Room amenties at the Lemon Tree include fl at screen TV, Tea Coff ee maker, minibar and
high speed WiFi internet access.
LE MERIDIEN
The Le Meridien, Ahmedabad, former Holiday Inn, is located Near Nehru Bridge, considered to be the older part of the city. The hotel off ers 63
well appointed rooms overlooking the Sabarmati river, with full service facilties. The hotel also off ers multiple food and beverage options, meeting
facilties and an indoor covered signature swimming pool.
GATEWAY
This hotel earlier call the Taj Ummed, was rebranded as a Gateway Hotel in 2010. The hotel features 91 rooms, multiple F&B outlets, large lawns
and meeting facilities. This hotel is located close to the Ahmedabad International Airport.
SUPPLY ADDITIONS
Based on our conversations with hotel operators, local authorities and other sources, there are currently four hotels currently under various stages of
construction. These include a Holiday Inn Express, Radisson, Crowne Plaza and an Aloft.
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TAKSHASHILA GALLERIA AHMEDABAD INVESTMENT SUMMARY
The Takshashila Galleria, Ahmedabad enjoys one of Ahmedabad City's premier hotel locations. The Hotel should be able to
capitalize on its superior location, corporate business growth and sustained lodging demand growth on account of the
tremendous growth fundamentals of the city, already projected as the future commercial capital of the country.
The following factors will allow the Takshashila Galleria to improve on its current performance and reach new heights in
rate growth and occupancy:
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•
•
•
•
•
Continued hotel room demand increases to the Ahmedabad city market.
Further expansion, of the central business district around the hotel, and increased commercial activity around the hotel.
Immediate increase in performance parameters of the hotel and NOI, through repositioning of the hotel.
Improved distribution reach by re-branding the hotel under a globally renowned hotel franchise.
More business demand in the area as additional office buildings open.
Strong Food & Beverage demand.
SUMMARY OF ASSUMABLE DEBT
Tenure: to be discussed
Rate: to be discussed
Details: to be discussed
TERMS OF Joint Venture/ LEASE/ Managment
Price: Competitive Offers Requested
Terms: Transfer of shares
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For Information Contact:
Corp. Office:
“Takshashila House”, Nr. Krishnabaug Cross Road, B/h. Fire
Station,
Maninagar, Ahmedabad 380008.
Phone: +91-79-25471474 Telefax: +91-79-25471497
[email protected], www.takshashilarealties.com
Hotel Site:
200 ft. S. P. Ring Road, Nr. Eco Park, Vastral, Ahmedabad